Originally Posted by
waldo29
The tracking stock split is a 2016 event. Positioning will take place over the next 4 months or so. I'll re-iterate what I posted last week concerning the tracking stock split, specifically as it applies to SIRI.
From here:
1) The will be an arbitrage play as we get closer to the split, long LM short SIRI.
2) If you are not long LM at this time, there will likely be a better entry point prior to the transaction (2016). Read that as a negative to the SIRI share price from this level, but it will be a 2016 event.
In the more immediate, the HS 'event' will impact SIRI soon, the language from the press releases on Friday seem to allude that they are not close but, from the company's perspective they want to get a deal done. That event should be more of the focus for near term price movement in SIRI.
Disclaimer: Prior to this, I was (still am) short SIRI @ an average of 4.10. This morning I will hedge the SIRI position via calls. At this time, I have no position in LMCA (LMCK). When I took the short position I had an exit plan of high 3.80's. My stop is @ 4.29-ish. I am now hedged so I have more flexibility.